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Last Updated : Aug 18, 2017 10:59 AM IST | Source: Moneycontrol.com

Buy Sanghi Industries; target of Rs 115: KR Choksey

KR Choksey is bullish on Sanghi Industries Ltd has recommended Buy rating on the stock with a target price of Rs 115 in its research report dated August 10, 2017.

 
 
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KR Choksey's research report on Sanghi Industries Ltd


Total Sales stood at INR 3132 mn as against our expectations of INR 3150 mn which was up by 3.8% Y-O-Y and 14.4% Q-O-Q. Total sales volumes declined to 0.66 MT which was down by 7.5% Y-O-Y on account of significantly lower clinker exports and flattish cement volume growth. EBIDTA increased to INR 661 mn which was up by 0.9% Y-O-Y and 56% Q-O-Q and EBIDTA margin stood at 23% as against 24.2% same quarter last year. EBITDA/ton surged to INR 991 as against INR 910 in Q1FY17 primarily on account of sharp increase in realizations.


Outlook

We value the company at an EV/ton of $90 on FY19E and arrive at a target price of INR 115/share translating into an upside of 37% from CMP of INR 84/share. We maintain our BUY rating on the stock.


For all recommendations report, click here


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First Published on Aug 18, 2017 10:57 am
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